Perkins loans what is

Perkins Loans are originated and serviced by participating schools and repaid to the school. The government does not insure the loans, but instead provides money to eligible institutions to help fund the loans. If you default on a Perkins loan, it is usually the school that will come after you to collect. In some cases, the school will assign a Perkins loan to the Department of Education.

In , Congress chose not to keep the program. Then, in December , President Obama signed a law temporarily extending the Perkins loan program for two years for eligible undergraduates and one year for eligible graduate students.

The Department posted information about the winding down of the Perkins program. Please visit our blog for the most up to date information on what this will mean for student loan borrowers.

What do I need to know about repaying my Perkins loan? Don't see what you're looking for? What is a Stafford loan? What are the different ways to pay for college or graduate school?

Learn more about student loans. Search for your question Search for your question. You have to pay back your Perkins loan. Even though the loans were discontinued by the federal government, you will still owe the money you borrowed unless you meet the specific criteria to qualify for student loan forgiveness. A Perkins loan was a federal student loan with low interest available to undergraduate and graduate students who demonstrated financial need.

The government no longer offers Perkins loans, unlike federal direct subsidized and unsubsidized loans, called Stafford loans. Like Perkins loans, these are low-interest student loans, but these loans are not contingent on specific income, unlike Perkins loans. Department of Education. Consumer Financial Protection Bureau.

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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Family Finances Saving For College. Table of Contents Expand. What Was a Perkins Loan? How a Perkins Loan Worked. How to Repay a Perkins Loan. Perkins Loan Forgiveness.

Other Federal Student Loans. Key Takeaways The Perkins loan program expired at the end of September and was not replaced by another form of low-income, need-based loan. The U. Parents can take out Plus loans for their undergraduate children, but there are downsides to this type of program.

The Perkins loan program expired due to budgetary cuts, but disbursements of funds continued until June Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

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